Binary options are one of the most popular investment types in Russia, but many considered how even though it is possible to get a brokerage license for this type of instruments by the Russian FMMRC, the market is still poorly regulated. Russia became somewhat of a safe haven for binary trading after CySEC imposed many restrictions and limitations towards binary brokers.
Bank of Russia announced that there is a high chance that their local regulator will also shift their focus towards customer protection in the near future. Valery Lykah, Head of the Department for Countering Malpractice within the Bank of Russia, indicated how it is the final time to acknowledge the existence of binary options scams and necessity of proper regulation in that field.
According to Lykah, Russian Police Department is doing several researches on binary trading scams and is frequently asking Bank of Russia for expert assistance. However, Russian Bank can only provide an opinion but has no authority to close, prosecute or remove binary trading licenses.
The next big step, as Lykah stated, would be creating a regulatory framework that strictly distinct binary trading from other, more common types of investing in financial markets. The new rules would help citizens understand the difference between different types of derivatives that are present on the market, including binary options.
What is interesting is that citizens will already now be able to pick up a leaflet about binary trading and read more about how to tell a scam. Increased number of scams on Russian market motivated authorities to act. Russian Forbes mentions astonishing numbers – Russians made almost 30% traffic on 4 leading binary websites. Speaking in numbers, that is 14.5 million visits in the first 6 months.